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iTunes, iPod Could Help Apple Make Gains in the College Market

Tuesday, August 9th, 2005 at 3:00 PM - by Brad Cook

Keith Regan over at MacNewsWorld has filed an article about the iPod's halo effect on college campuses. With Apple "a nearly ubiquitous presence on campuses from coast to coast" thanks to the MP3 player's popularity, he writes, the company could turn around its market share in the education space. While Apple led all computer makers with 30% of the education market in 1999, Mr. Regan cites IDC statistics that put its 2004 share at 14%, with Dell leading the way at 44%.

Mr. Regan notes: "While Apple works to offer discounts to colleges and students, it also strategically partners with research projects and other departments to put Apples to use in high-profile projects that can also help polish Apple's image as a maker of workhorse machines." The company's Digital Campus initiative has helped make inroads.

Apple also has an iTunes on Campus program that grants site licenses for iTunes and gives discounts to students who want to buy music. "If there is a halo effect, they are positioned and ready to capitalize on it," Needham & Co. analyst Charles Wolf told Mr. Regan, who notes other IDC statistics showing that 75% of college student purchases are laptops, with Apple picking up 27% of those sales, up almost 5% in a year.